Continuing its efforts toward expanding into markets with vibrant growth opportunities, Old National Bancorp (ONB - Free Report) recently entered into a stock and cash merger agreement with Anchor Bancorp, Inc. Per the deal, which is expected to be completed by first-quarter 2018, Old National will acquire Anchor Bancorp by paying nearly $303.2 million.
The merger has been approved by the Board of Directors of both the companies. Nevertheless, it is still subject to regulatory approval and Anchor Bancorps’ shareholders’ consent.
Per the terms of the agreement, shareholders of Anchor Bancorp will get 1.35 Old National’s shares and $2.625 in cash for each of their own shares.
The above mentioned deal value is based on Old National’s share price at the close of Aug 7. Due to fluctuations in share price, the said value is subject to change. Also, it remains subject to certain adjustments under some circumstances mentioned in the agreement.
As of Jun 30, 2017, Anchor Bancorp had approximately $2.1 billion in total assets, $1.6 billion in total loans and $164 million in common shareholder’s equity. With the acquisition, Old National will become the 7th largest deposit holder in the Twin Cities market of Minnesota where Anchor Bancorp is based.
In the last one year, Old National stock has gained nearly 21.9%, marginally underperforming the 24.5% growth for the industry it belongs to.
Currently, the company carries a Zacks Rank #2 (Buy).
A few other top-ranked stocks in the finance space worth considering are Carolina Financial Corporation (CARO - Free Report) , The Bank of New York Mellon Corporation (BK - Free Report) and Ameriprise Financial, Inc. (AMP - Free Report) .
Carolina Financial witnessed an upward earnings estimate revision of 4.5% for the current year, over the last 60 days. Its share price has increased 64.9% in the last one year. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BNY Mellon carries a Zacks Rank #2. For the current year, its Zacks Consensus Estimate was revised 1.4% upward in the last 60 days. The company’s share price has increased 35% in the last one year.
Ameriprise Financial also carries a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 4% for the current year, over the last 60 days. Its share price has increased 55.5% in the last one year.
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